Get a Guaranteed 21% Return on Your Investment
When it comes to investments, it's common for investors and advisors alike to look long and hard and anticipated ROI.
Who hasn't sat through an insurance sales pitch for a whole life policy and had the insurance agent show how well the fund has done over the last 10 and 20 years.
She then uses the "historical investment return" to extrapolate what your policy will be worth in the future.
Then, lo and behold, even though the market is having huge gains, the anticipated investment return on your whole life policy is somehow falling short of expectations...
Not fair! Many of us have that anti-Midas touch where everything we invest in turns to dirt.
Of course, many have failed to see the anticipated ROI become reality, especially in today's fickle financial markets.
What if I told you there's still a safe and secure ROI out there that is often at 21% or even higher? I know, I know...
you're thinking that I am even higher than the 21% ROI I am proposing.
But, this is no joke.
What's more, it should be a primary aspect of the financial portfolios of over 80% of our population.
My friend - we'll call him "Steve" - was lamenting to me the other day about how much money he had lost in the stock market over the past few years.
As I reviewed his investment strategy it became apparent that he was the victim of bad luck, bad information, and an investment strategy that was too short term to succeed.
Not uncommon in this topsy-turvy market to be sure.
Next, I asked him the fateful question...
"Did you incur any debts over the last couple of years?" He looked a little ashamed to admit that, yes, he had increased the balances on his credit cards about $3,000 over two years to cover shortfalls here and there, and he had purchased a new refrigerator.
He had financed his purchase through one of the large furniture companies in the area.
I am familiar with the furniture company and their financing packages.
Many of my clients have a loan with this particular furniture store.
Most metropolitan areas have a furniture company or two who are also among the largest lenders in the area as well.
In fact, they are so successful with their lending that making money on the actual furniture is secondary.
But I digress.
The point is that I also knew that the average interest rate on the "180 days same as cash" loans this furniture company provides is 18%, even for good credit borrowers.
As I dug a little further, I discovered that "Steve" had $12,000 in revolving debt that he had incurred over the years, with an average interest rate of nearly 15%!!! So, I suggested to Steve that he start including his debts as a part of his investment portfolio.
After all, I explained, the name of the game is to maximize your dollar.
Your net worth is benefited the same whether you grow your assets or reduce your liabilities.
It makes no difference to your bottom line one way or another.
It is simply a matter of accounting.
Steve's highest interest rate debt was a whopping 19.
9%.
Steve has a 734 FICO score.
He has great credit, good income, and yet he's still paying 19.
9%.
Again, not uncommon.
I have found over the years that A-Credit borrowers pay very little attention to interest rates, especially when the loan is issued by a department store or a furniture store.
Guess what return Steve would get if he focused his investment dollar on that 19.
9% debt? Yep, he has a 19.
9% return on investment.
Guaranteed.
This type of return can't be found in any other investment product.
Once Steve has paid the debt off and received his "return" of 19.
9%, he now has an 18% loan waiting for him as he attacks his next highest interest rate debt, which just happens to be the furniture store.
If you have debt, and especially high interest rate credit card debt, you should maximize your return by paying the debts off early, if you have the means to do so.
As your guaranteed return goes down to where you are paying off lower interest rates, such as a car or a home loan, you are really only making a 4-5% return in most cases.
However, even that is better than any other investment I know of, since it is a guaranteed return and very secure.
As you are paying off your lower interest rate debts, you may want to include some investments that have a higher yield, but also carry some risk.
Regardless, if you have debt, it is time to recognize the returns that come from paying off your liabilities.
You'll be better off, guaranteed.
Who hasn't sat through an insurance sales pitch for a whole life policy and had the insurance agent show how well the fund has done over the last 10 and 20 years.
She then uses the "historical investment return" to extrapolate what your policy will be worth in the future.
Then, lo and behold, even though the market is having huge gains, the anticipated investment return on your whole life policy is somehow falling short of expectations...
Not fair! Many of us have that anti-Midas touch where everything we invest in turns to dirt.
Of course, many have failed to see the anticipated ROI become reality, especially in today's fickle financial markets.
What if I told you there's still a safe and secure ROI out there that is often at 21% or even higher? I know, I know...
you're thinking that I am even higher than the 21% ROI I am proposing.
But, this is no joke.
What's more, it should be a primary aspect of the financial portfolios of over 80% of our population.
My friend - we'll call him "Steve" - was lamenting to me the other day about how much money he had lost in the stock market over the past few years.
As I reviewed his investment strategy it became apparent that he was the victim of bad luck, bad information, and an investment strategy that was too short term to succeed.
Not uncommon in this topsy-turvy market to be sure.
Next, I asked him the fateful question...
"Did you incur any debts over the last couple of years?" He looked a little ashamed to admit that, yes, he had increased the balances on his credit cards about $3,000 over two years to cover shortfalls here and there, and he had purchased a new refrigerator.
He had financed his purchase through one of the large furniture companies in the area.
I am familiar with the furniture company and their financing packages.
Many of my clients have a loan with this particular furniture store.
Most metropolitan areas have a furniture company or two who are also among the largest lenders in the area as well.
In fact, they are so successful with their lending that making money on the actual furniture is secondary.
But I digress.
The point is that I also knew that the average interest rate on the "180 days same as cash" loans this furniture company provides is 18%, even for good credit borrowers.
As I dug a little further, I discovered that "Steve" had $12,000 in revolving debt that he had incurred over the years, with an average interest rate of nearly 15%!!! So, I suggested to Steve that he start including his debts as a part of his investment portfolio.
After all, I explained, the name of the game is to maximize your dollar.
Your net worth is benefited the same whether you grow your assets or reduce your liabilities.
It makes no difference to your bottom line one way or another.
It is simply a matter of accounting.
Steve's highest interest rate debt was a whopping 19.
9%.
Steve has a 734 FICO score.
He has great credit, good income, and yet he's still paying 19.
9%.
Again, not uncommon.
I have found over the years that A-Credit borrowers pay very little attention to interest rates, especially when the loan is issued by a department store or a furniture store.
Guess what return Steve would get if he focused his investment dollar on that 19.
9% debt? Yep, he has a 19.
9% return on investment.
Guaranteed.
This type of return can't be found in any other investment product.
Once Steve has paid the debt off and received his "return" of 19.
9%, he now has an 18% loan waiting for him as he attacks his next highest interest rate debt, which just happens to be the furniture store.
If you have debt, and especially high interest rate credit card debt, you should maximize your return by paying the debts off early, if you have the means to do so.
As your guaranteed return goes down to where you are paying off lower interest rates, such as a car or a home loan, you are really only making a 4-5% return in most cases.
However, even that is better than any other investment I know of, since it is a guaranteed return and very secure.
As you are paying off your lower interest rate debts, you may want to include some investments that have a higher yield, but also carry some risk.
Regardless, if you have debt, it is time to recognize the returns that come from paying off your liabilities.
You'll be better off, guaranteed.
Source...